Radio Mirchi posts net profit of Rs 43 million in Q1FY11

MUMBAI: Entertainment Network (India) Ltd. (ENIL) has reported a net profit of Rs 43 million (Rs 4.3 crore) in Q1FY11 as compared to a net loss of Rs 14 million (Rs 1.4 crore) in Q1FY10.

The company reported EBITDA of Rs 145 million (Rs 14.5 crore) for the quarter ended June 30, 2010, which had YoY growth of 56.8 per cent. For the quarter, revenues grew by 14.5 per cent to Rs 575 million (Rs 57.5 crore).

On a consolidated basis, the company reported total income of Rs 1.15 billion (Rs 115 crore), a growth of 31.7 per cent compared to the same quarter of previous year. Consolidated EBITDA for the quarter stood at Rs 147 million (Rs 14.7 crore).

ENIL executive director and CEO Prashant Panday said, “Overall, the advertising markets are looking up. The zing is back! Those brands which have invested in brand building during the down-turn of the last 18 months are likely to gain in the coming quarters. Our strong listenership has made Mirchi a permanent feature of most advertising plans. We look forward to a quick resolution of the music royalty issue and thereafter to Phase III.”

On July 8, 2010, the Board of Directors of the Company in-principle approved the sale of ENIL’s entire equity stake of 83.44 per cent in Times Innovative Media Ltd (TIM) to Bennett, Coleman & Company Ltd (BCCL). Commenting on the deal, ENIL group CFO N. Subramanian said, “The deal is positive for ENIL as it will release significant cash for the upcoming Phase III investments in the radio business. It will also improve the consolidated profitability of the Company going forward.”